Instant Payments! Just add FedNow!

In May 2022, Routable introduced support for the creation of Instant Payments via the Real-Time Payments (RTP)network. But it's 2025 now, so we've decided to kick it up a notch.

We're thrilled to announce we've added support for FedNow, a new instant payment network offered by the Federal Reserve, to our Instant Payments offering. Built right on top of our existing RTP implementation, the addition of FedNow significantly increases the coverage of accounts that can receive Instant Payments to include many more financial institutions that do not participate in the RTP network, such as smaller credit unions and community banks. Between the two networks, Routable's Instant Payments offering can now send funds in seconds, 24/7/365, to more than 85% of bank accounts in the United States.

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Want to add FedNow? Good news - you're already done!

If you implemented Instant Payments via RTP in the Routable API prior to the addition of FedNow, you don't have to change anything in your code to start taking advantage of FedNow. You'll just see a higher percentage of banks that support sending money lightning-quick!

While ACH and Instant Payments are both types of account-to-account bank transfers, there are some important differences:

💸 Instant Payments are final and irrevocable. No settlement time is required, so your vendor receives their funds instantaneously.
💸 Instant Payments are available year-round, without being delayed due to weekends or banking holidays, and funds become available in almost real time.

When using Instant Payments, Routable will automagically route your payments via RTP or FedNow, depending on the capabilities of the pay_to_payment_method. Some banks support the RTP Network, some support FedNow, and some support both or neither. You won’t need to worry about which network is supported; Routable will choose the best available option for you to get the payment processed. (If the vendor’s bank supports both RTP and FedNow, the transfer will be performed over the RTP Network.)

The fee structure for FedNow is the same as RTP, too, so the only impact to you is more of your vendors getting their payouts at light speed!